Universities challenged: Further education budget reduced by £573m

"More than 100 universities have had their budgets slashed or frozen, it emerged today in the first real glimpse of how public spending cuts will bite.

"Figures released this morning show 99 of the 130 universities in England - including Oxford and Cambridge - have had their funding cut in real terms. A further two face a freeze. A breakdown of this year's budget - cut by £573m in cash terms (or 1.6 per cent) - also shows 6,000 fewer students will be enrolled this September. This is in spite of the fact that applications have soared by 23 per cent (106,000), and this will leave about 220,000 would-be students - out of an estimated 700,000 applicants (including international students) - without a place. In addition, 20 universities face hefty fines for recruiting too many students last September."